Kolkata: Gold sales during Ganesh Chaturthi have fallen about 15% year-on-year in volume terms as consumers have either trimmed purchases or switched to lighter pieces following a steep rise in prices of the yellow metal, according to industry executives.
On Monday, gold was trading at Rs 1.57 lakh per 10 grams with a goods and services tax of 3% in Mumbai’s spot market, up about 60% from Rs 98,000 per 10 gm last year on Ganesh Chaturthi, which fell on August 28.
“Domestic gold prices have remained at a historic high, which has impacted volume sales. But overall the mood is optimistic, with many people resorting to old gold jewellery exchanges to buy new jewellery, which is mostly lightweight,” said Surendra Mehta, national secretary, India Bullion & Jewellers Association.
Kumar Jain, owner of Umedmal Tilokchand Zaveri, a 100-year-old outlet in Mumbai’s Zaveri Bazaar, said, “Bullion sales in the form of coins and bars have shown traction this Ganesh Chaturthi, even though the volume is lesser than last year.”
The shift towards coins and bars indicates that while consumers continue to allocate money to gold during auspicious occasions, high jewellery prices are prompting greater caution.
The trend is in line with the broader pattern seen in the Indian gold market. The World Gold Council said the festive season had started cautiously, with the sharp rally in gold prices leaving consumers in a wait-and-watch mode and delaying discretionary purchases. At the same time, wedding-related buying has remained relatively resilient and physical investment demand steady.
Jewellers, however, remain hopeful that the demand slowdown would be temporary as the festive calendar moves closer to the peak wedding period. With weddings coinciding with the festive season, retailers expect consumers to increasingly look for jewellery that can be worn across celebrations, gifting occasions and everyday use.
“We are seeing greater interest in diamonds as buyers seek jewellery that is versatile enough for celebrations, gifting and everyday wear,” said Rohan Hemdev, director, Ananya Jewels.
Younger consumers are also showing stronger interest in self-purchase, with women increasingly buying jewellery to mark festivals and personal milestones.
Hemdev expects the festive season to deliver double-digit growth, supported by wedding demand, higher disposable incomes and changing consumption patterns. Digital platforms, social media, influencers and celebrity collaborations are also becoming increasingly important in making jewellery more aspirational and relevant to younger buyers.
“With the ongoing festive season, we expect buying interest to gradually pick up, especially as consumers and jewellery retailers prepare for the period,” said Darshan Desai, CEO, Aspect Bullion & Refinery.
